Question
The Statistical Institute of Clever Island has provided the following information for the year 2020. The figures are listed in billion of dollars ($ billion).
The Statistical Institute of Clever Island has provided the following information for the year 2020. The figures are listed in billion of dollars ($ billion). Assume that in 2019 the financial and government sectors were in equilibrium, but the external sector had a net injection of $200 billion.
Exports (X) = 800
Imports (M) = 900
Savings (S) = 400
Private investment = $300
Taxation (T) = 800
Government expenditure (G) = 900
In relation to thecircular flow of incomemodel for 2020, which of the following is correct?
Select one:
a.Net leakages are equal to $100 million
b.Net leakages equal $300 billion
c.Net injections are equal to $100 million
d.Injection equals leakages
The Statistical Institute of Lilliput has provided the following information for the year 2020. The figures are listed in billion of dollars ($ billion). Assume that in 2019 the financial and government sectors were in equilibrium, but the external sector had a net injection of $200 billion.
Exports (X) = 800
Imports (M) = 900
Savings (S) = 400
Private investment = $300
Taxtion (T) = 800
Government expenditure (G) = 900
The sector that contributed most to the change in economic activity in 2020 compared to 2019 was
Select one:
a.The external sector
b.All sectors contributed equally to the change in economic activity in 2020
c.The government sector
d.The financial and external sectors
Which of the following isNOTa factor of production?
Select one:
a.Natural resources
b.Labour
c.Entrepreneural skills
d.Goods and services
Inflation generally occurs during _____________.
Select one:
a.Recessions
b.Economic booms
c.Periods of hyperinflation
d.Times of deflation
The employment rate is computed by the_________.
Select one:
a.The Ministry of Labour
b.The Ministry of Finance
c.The Statistical Institute of Jamaica
d.Statistical Bureau of Labour
Which of the following is a macroeconomic topic?
Select one:
a.the reasons for the rise in the price of Captain Bakery's bread
b.whether the army should buy more tanks or more guns
c.the reasons for the rise in average prices
d.why plumbers earn more than janitors
In broad terms the difference between microeconomics and macroeconomics is that
Select one:
a.microeconomics studies the effects of government taxes on the national unemployment rate.
b.microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy
c.they use different sets of tools and ideas.
d.macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not.
The statement that ________ is a positive statement.
Select one:
a.more students should study economics
b.the price of sugar in the Jamaica is higher than the price in Guyana.
c.too many people in Jamaica have no health care insurance
d.the price of gasoline is too high
The condition of a continually rising price level is defined as
Select one:
a.Stagflation
b.Disinflation
c.inflation
d.Stagnation
The Circular Flow Diagram is a model showing
Select one:
a.the relationship between major sectors of the economy.
b.the relative importance of the different sectors of the economy.
c.that the different sectors of the economy are interdependent.
d.how the market system works.
Positive statements do not contribute to the development of the country's economic policies.
Select one:
True
False
Microeconomic behavior is the sum of all the macroeconomic decisions made by individual households and firms
Select one:
True
False
Royalties would be considered to be part of the income payments flow in thecircular flow of income.
Select one:
True
False
The savings of households is considered to be an injection in the circular flow of income.
Select one:
True
False
The aggregate demand for bread has fallen due to hikes in price. This is a good example of inflation at work.
Select one:
True
False
In some countries it is acceptable as norm to have an unemployment rate of five percent.
Select one:
True
False
In the five sector model of thecircular flow of income, the businesses are referred to as the factor market.
Select one:
True
False
The employment rate is the number of people employed divided by number of people in the labor force.
Select one:
True
False
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